Bankruptcy in Cairns – Changes that can help Small Business and Entrepreneurs.

Bankruptcy in Cairns – Changes that can help Small Business and Entrepreneurs.

Written 15th March 2016 – By Charles Bosse– If checking this out greatly after this date, please read through a few of our other blog posts to validate the relevant information is still up to date. Do you realise just how much Bankruptcy in Cairns is going to be changing? The Australian Government at the end of 2015 produced some extreme propositions and prospective changes to the Bankruptcy Laws in Australia, particularly when it comes to the duration of personal bankruptcy. At this time, there is a minimum amount of time that you will need to remain bankrupt, having said that, this 3 year period may well be decreased to just 12 months. So if you are looking into insolvency, these alterations are going to be rather critical to you! How did this all come to be? Well, Mark Carnegie (an expert in this area) reviewed back in December 2015 in the Financial Review that there was going to be suggestions for “the proposed changes to ease the burden of bankruptcy laws didn’t go far enough and the government should adopt US-style laws to protect the family home”. What problem is he trying to resolve? Currently, the legislations don’t have enough protections, to the level that Mr Carnegie, proceeded to point out in the Financial Review that offering safeguards to household assets was needed since “banks just terrorise small business and the mental health consequences to society are enormous”. The trouble is Australia’s bankruptcy laws discouraged financiers from supporting start-ups, and for that reason mentoring had been “driven out of the system” and lots of individuals are too anxious to try and invest or try to run a small business. “They naturally find it very intimidating themselves personally and with their assets at risk in a risky early-stage deal, but with their own money in the deal and a lightened-up provision I think we’d probably see more willingness. It could be more important than the money”. That means that currently, the existing legislations are costing the economy and they may benefit you, however they can be exploited and occasionally the innocent fall in the gaps and get unfairly penalized. What is being proposed? The proposal is to get the 3 year bankruptcy duration minimized to just 12 months when there is zero indication of fraudulence or unethical practices. These improvements will mean a lot for Bankruptcy and will take approximately 18 months to implement. What is Fraudulent Behaviour? Fraudulent behaviour is effectively a phrase that addresses all of the bad factors. So when it concerns Bankruptcy, this indicates that it will deal with behaving dishonestly, concealing assets, taking reckless risks, behaving unethically or just generally attempting to con individuals. One proposed recommendation is that although they are lowering the amount of time for those behaving honestly, they could in fact carry out a counter proposition to pinpoint those behaving particularly dishonestly and raise the time. There are currently some arrangements in place for when you do not follow particular rules (and I recommend you to learn more about Bankruptcy to make sure you don’t inadvertently break these rules) but it will be interesting to observe exactly how this evolves. So is this a Win for Small Business? Yes, most definitely! This is going to be great for business and I really hope that you are reading these changes to Bankruptcy and are getting as excited as I am. These proposed modifications will benefit businesses because it will urge additional individuals to get engaged and take calculated risks– There will however be penalties in effect, but it won’t be unfairly penalizing people who make genuinely honest mistakes. Many small business owners I assist with Bankruptcy, are hardworking, tax paying, companies that are helping keep this country going and so I am excited to see what will be taking place next with this, and just how it will impact Bankruptcy. Bankruptcy helps save lives, and it could possibly save yours. If you really need some support with your financial obligations in Cairns or are just considering Bankruptcy, don’t hesitate to phone us here at Bankruptcy Experts Cairns on 1300 795 575, or visit our website: www.bankruptcyexpertscairns.com.au

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What you MUST know before You declare yourself BANKRUPT

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